Chapter 1 Flashcards
(22 cards)
The pleasure happiness or satisfaction obtained from consuming a good or service
Utility
To obtain more of one thing society for goes the opportunity of getting the next best thing
Opportunity costs
Comparisons of marginal benefits and marginal costs usually for decision-making
Marginal analysis
A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions
Economic principle
The assumption that factors other than those being considered do not change
Other things equal assumption
Examines either the economy as a whole or it’s basic subdivisions or aggregates
Macroeconomics
A collection of specific economic units treated as if they were one unit
Aggregate
Part of economics concerned with individual units such as one person a household a firm or an industry
Microeconomics
Focuses on facts and cause-and-effect relationships
Positive economics
Which incorporates value judgments about what the economy should be like
Normative economics
The need to make choices because economic wants succeed economic means
Economizing problem
Schedule or curve that shows various combinations of two products a consumer can purchase
Budget line
All natural human and manufactured resources that go into the production of goods and services
Economic resources
What are the four economic resources
Land labor capital and entrepreneurial ability
Purchase of capital goods
InVestment
Consists of the physical and mental talents of individuals such as a logger
Labor
Includes all manufactured aids used in producing consumer goods and services
Capital
Includes all natural resources used in production processes such as forests
Land
Special human resource distinct from labor
Entrepreneurial ability
Products that satisfy our wants directly
Consumer goods
Products that satisfy our wants indirectly
Capital goods
A larger total output
Economic growth
